UPSC Mains 2023 GS3 Q20 — Terrorism Financing
Give out the major sources of terror funding in India and the efforts being made to curtail these sources. In the light of this, also discuss the aim and objective of the No Money for Terror (NMFT)' Conference recently held at New Delhi in November 2022. (Answer in 250 words )
Question Decoded — examiner's intent
- Directive verbs
- Give outdiscuss
- Scope keywords
- major sources of terror fundingefforts being made to curtailNo Money for Terror (NMFT) ConferenceNew Delhi in November 2022
- Implicit sub-parts
- Classification of funding into internal (extortion/taxation) vs. external (diaspora/state-sponsored) vs. illicit (drug trafficking/fake currency) sources.
- Institutional, legal, and technological frameworks established by the Indian government.
- The transition from 'monitoring' to 'prevention' through international cooperation and the significance of the 'Permanent Secretariat' proposal.
- Emerging challenges like Crowdfunding, Darknet, and Virtual Assets mentioned during the NMFT conference.
- Common pitfalls
- Focusing only on Pakistan-sponsored funding while ignoring internal sources like extortion in the Northeast or Naxal belts.
- Providing a generic list of anti-terror laws (UAPA) without specifically linking them to the 'financial' curtailment aspect.
- Failing to mention the 'Delhi Declaration' or the specific shift towards addressing 'Grey Zone' financing discussed at the 2022 NMFT.
- Omitting the role of international bodies like FATF and how NMFT complements the global AML/CFT architecture.
- Dimensions required
- Legislative (UAPA, PMLA)Institutional (NIA, FIU-IND, NATGRID)Technological (Blockchain monitoring, Fintech regulations)Diplomatic/Multilateral (FATF, NMFT, UN Counter-Terrorism Committee)Economic (Hawala, FICN, Cryptocurrencies)
- Marks allocation hint
Allocate 5 marks to identifying diverse sources (Internal/External/New Tech), 5 marks to the multi-layered Indian efforts (Legal/Institutional), and 5 marks specifically to the NMFT Conference's objectives and the Delhi Declaration. Spend approximately 80 words on sources, 80 words on domestic efforts, and 90 words on the NMFT context and conclusion.
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